So I got this direct mail today from Blockbuster Video, promoting some “New Deal”.
I think Blockbuster is horrible.
It’s not something they’ve ever done to me, I’ve probably rented videos from them less than 10 times in my life.Â The reason I hate Blockbuster is because it’s a company whose annual cash flow has historically depended heavily on late fees and penalties.Â In other words, this company’s business model is fundamentally predatory and dare I say usurious when you consider how a few days of late fees cost more than buying the damn movie.
I’m tickled silly that Netflix has beat the living snot out of blockbuster with an innovative and consumer friendly business model.Â In fact, check it out OnLine: NFLX is soaring and Blockbuster is in the crapper.Â Yes, it really stinks for the people who will be out of work once blockbuster takes its last gasp, but something tells me that working there doesn’t make for a career path with growth potential.Â If only money could be made shorting the few pennies left in blockbuster stock.
So it would appear that borrowing a page from how to completely f**k up a company, Reed Hastings, the (likely soon to be former) CEO of Netflix has made several moves that even he admits were not so slick. In this week’s Time magazine, he’s quoted as saying “I slid into arrogance based upon past success”. Wow, well, I guess that’s an apology. I was even thinking of signing up until this fiasco set off in July. If only I’d shorted the stock. -j
I must be psychic: http://blog.sfgate.com/techchron/2011/10/25/netflix-stock-tanks/